US investors shun Nigeria as capital importation dips from $67m to $8m in Q4 2023

In a development that belies the much-vaunted US-Nigeria economic relationship, fresh data from the National Bureau of Statistics has shown that capital importation from Joe Biden’s country into Nigeria dipped by $59m in the 4th quarter of 2023.

The figure fell from $67.04 million in the third quarter of 2023 to $8.34 million in the fourth quarter signifying a decline of $59m in the period within review.

This statistics was contained in the latest Capital Importation recently released by the NBS.

U.S. Deputy Secretary of Treasury, Wally Adeyemo, had earlier highlighted the absence of a solid macroeconomic framework capable of attracting more dollar-denominated foreign direct investments in Nigeria.

Adeyemo emphasised Nigeria’s need to showcase a commitment to economic fundamentals to draw foreign investors and achieve economic prosperity.

READ ALSO:US investor continues sell off of NGX Group shares during poorest quarter

This Q4 2023 decline starkly contradicts previous assurances from U.S. government officials regarding strengthening economic ties and sustained investor interest in Nigeria.

David Greene, the Chargé d’Affaires for the U.S. Embassy in Nigeria, articulated an intense eagerness among American investors and corporations to engage with Nigeria, highlighting the nation’s substantial economic potential.

Moreover, he pointed out the significant U.S. support, surpassing $1.2 billion across diverse sectors such as technology, agriculture, and health for the fiscal year 2022.

Greene also noted the satisfaction of U.S. businesses and investors with the policies of President Bola Tinubu’s administration.

Further reinforcing this narrative, U.S. Secretary of State Anthony Blinken reassured the readiness of American companies to partner with and invest in Nigeria, albeit acknowledging the challenging business environment and the essential need to combat corruption and foster a more inviting business landscape.

Babajide Okeowo

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